Wan Zulkiflee is currently chief operating officer at Petronas, and will replace current head Shamsul Azhar Abbas, Bernama said, quoting the prime minister's office. Wan Zulkiflee's contract will run until March 31, 2018.

Shamsul's contract expired on Monday, although his term of service will be extended to the end of March this year.

Under the helm of Shamsul, Petronas, Malaysia's only Fortune 500 company, has expanded abroad to shore up future earnings as output slows at home.

The company bought Canada's Progress Energy Resources in 2012 in a deal worth around $5 billion that gave it shale gas properties in northeastern British Columbia.